According to Edge Realty Analytics’ July Metro Deep Dive, Vancouver’s real estate market is showing mixed trends, with a modest increase in home sales but a rising inventory level.

Home Sales Show Minor Uptick

In June, Vancouver experienced a slight increase in home sales, rising by 1.2% month-over-month (m/m) after a notable 7% decline in May. Despite this uptick, sales are still significantly lower compared to previous years. Year-over-year (y/y), sales have dropped by 19.1%, and they are 30% below the average levels of the past decade. Notably, condo sales are down nearly 21% compared to the same period last year. Overall, sales across all segments are trending towards decade-low levels for the month.

New Listings Decline

Seasonally adjusted new listings increased by 4.5% month-over-month and 7% compared to the previous year. Despite this rise, the sales-to-new-listings ratio has fallen to 44%. Historically, a ratio at this level is linked to an estimated 5% annual decline in home prices.

Increasing Inventory Levels

Active listings in Vancouver have surged by 42% year-over-year, with a substantial 54% increase in the condo segment. Both condos and single-family homes are seeing significant counter-seasonal growth in inventory, contributing to the overall rise in available properties.

House Prices Experience Slight Drop

In June, seasonally adjusted house prices fell by 0.2% month-over-month. This slight decrease reflects broader market trends influenced by rising inventory and changes in the sales-to-new-listings ratio.

Surge in Construction Activity

Construction activity is on the rise, with the number of dwellings under construction increasing by 1.3% month-over-month in May. This growth is primarily driven by the condo segment, which saw a 1.8% monthly increase, and rental properties, which grew by 0.6% month-over-month. Meanwhile, the single-family segment has remained stable but is down 16% year-over-year. Despite the high levels of housing starts, over 90% of new construction over the past year has been focused on apartments (condos and rentals), while single-family home starts have hit their lowest level in 35 years.

Vancouver Real Estate Market Update: July 2024 (canadianrealestatemagazine.ca)